Burger King’s relocation to Canada after merging with Tim Hortons is reported to potentially save the company between $400 million to $1.2 billion in U.S. taxes from 2015 to 2018 – because it won’t have to pay U.S. taxes on future worldwide profits.

In response to the report by Americans for Tax Fairness, Burger King said:

“The analysis in the report is materially flawed and the figures do not accurately represent our facts and circumstances.”

Burger King will keep its main offices in Miami. The company said that the merger is not because it is seeking lower tax rates, but rather because it is part of a growth strategy to create value through accelerated expansion, says the Miami Herald.

The ATF report said:

“By renouncing its U.S. corporate “citizenship” Burger King could dodge $117 million in U.S. taxes on profits that it held offshore at the end of 2013. Burger King has been able to indefinitely defer paying taxes on those profits under U.S. law; by becoming a Canadian company it may never pay U.S. taxes on those profits.”

“In addition, Burger King may avoid an additional $275 million in U.S. taxes between 2015 and 2018 because under Canadian law it will no longer have to pay (even on a deferred basis) U.S. taxes on future worldwide profits.”

The report also pointed out that the merger could allow Burger King’s largest shareholders to save as much as $820 million in capital gains taxes because of the way the company has structured the inversion.